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Employer  >  Trustee Zone  >  OPS Matters  >  Stalling on longevity

Stalling on longevity

On 21 July, The Pensions Regulator (TPR) announced that following its February 2008 consultation on longevity it’s listened to the 80 responses and decided to delay the way longevity is treated in the scheme funding regime.

Originally, TPR planned to apply new life expectancy assumptions for valuations effective from March 2007 but now the changes will now come into effect from the next scheme valuation cycle, which starts this September.

Schemes have 15 months from the valuation date to undertake a valuation, submitting a recovery plan to TPR if they are in deficit. The delay means the first recovery plans under the new rules will be due more than a year later, in December 2009.

What now?

It’s very much a case of watching this space again. TPR expects to publish its full response and the final version of its new approach later in the summer so we’ll tell you all about it later once we know the detail.

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice.

Source: The Pensions Regulator - Good practice when choosing assumptions for defined benefit pension schemes with a special focus on mortality, July 2008